More on Penn Traffic. Other stuff, too.

Some follow on today's P-S story about The Penn Traffic Co., parent of P&C Foods, possibly setting itself up for a sale or merger.

* A reader e-mails, "If Penn Traffic were to merge, be sold, or taken over by Weis or A&P, would local stores keep the P&C name that has been in our communities for over 60 years, or would they rename the stores to one of their own banners? It would be a shame if P&C stores were no longer a part of the Syracuse community. Could the filing of this document mean that Penn Traffic may be acquiring a small supermarket chain as the last article I read concerning Penn Traffic stated that the company had $52 million in available credit. Also, I have noticed that Penn Traffic has converted many stores in the past couple of months to the Fresh Market format. Why would the company continue on this path if they are just going to be swept up by a competitor?"

There's a lot of speculation and talk about what's going on at Penn Traffic. No one, save top executives and the board of directors, really knows what the motives are behind the "change in control protection agreements" filed with the Securities and Exchange Commission in April.

Penn Traffic execs have been running with zipped-lips for about a year now, after they came out of Chapter 11 and as the federal investigations heated up. Some are saying that's precisely why no one at the top has been heard from in so long.

So a lot of what we get, we get from observers and industry insiders and other people in the know.

Whether the P&C name would continue if the company is acquired is uncertain. We can only look at history and current trends. Some supermarket chains have multiple banners. Penn Traffic itself has multiple banners. About a year ago, I sat with key executives at Penn Traffic headquarters and they told me there was strong consideration about changing the name of the company or banners. That never happened.

While many retailers operate with multiple banners, some like to go under one name for consistent branding. Look at Federated Department Stores. It's changing the mulitple-banner names of the stores it acquired when it bought May Department Stores. And what it doesn't wish to rebrand is being discarded. Kaufmann's will become Macy's, Federated's brand name. The former May's Lord & Taylor banner will be sold off.

When you think like Federated, it makes sense, having one recognizable brand name coast-to-coast. You know Macy's in California is much like Macy's in Syracuse.

On the other hand, people like their local names. Maybe that's why Penn Traffic kept the Big Bear name in Ohio and P&C in Upstate New York rather than putting the same banner on the stores.

Similarly, A&P operates under the Farmer Jack name in Michigan. Weis, too, has multiple banners.

So while we wait to see what happens with Penn Traffic, we wait to see what happens with the P&C name.

On your other points, like why would Penn Traffic sell or merge:

The analysts I spoke with -- and remember, they could be wrong -- say the company just has to. Its board is mostly made of investors who need to make their nut. That's what investors do: invest and move on.

Another potential buyer, some say, could be Pittsburgh-based Giant Eagle or Delhaize Group, which could fold P&C into its Hannaford banner (like other supermarket companies, Delhaize also has multiple banners, including Food Lion).

Why are the names of A&P, Weis, Tops, Giant Eagle and Hannaford being talked about in grocery circles as possible suitors for Penn Traffic?

First, there aren't that many companies right now who are in a position to acquire another supermarket chain. These may be the ones.

Secondly, and probably more importantly, Penn Traffic's trade territory is a logical extension of the footprint of all of the retailers mentioned. They fill their urge to grow with a supermarket chain -- Penn Traffic -- that operates in or near their neighborhood. For supply and command purposes, it's a fit.

The P&C stores in the Syracuse market have been ever more impressive in display and appearance. Recently, I've done some shopping at the Fairmount store and in the store in Westvale Plaza. I hadn't been in the Westvale store in quite a while, and was stunned at how bright, clean and orderly it looked.

And the Fresh Market approach for P&C is a smart move.

No matter what analysts say about a possible sale of the company, they far and away laud Bob Chapman, the company's president and chief executive officer, with making heroic positive changes throughout the corporation.

On to:

E-mail:

* Barbara B. writes, "Finally found your Store Front blog -- I've been a fan of your column for years! Did you know about (and already report on) the new Mexican restaurant going to the former Chinese restaurant space on Erie Boulevard between Midler and Thompson Road? I think it's called El Canino or El Cantino. We need more Mexican food on our side of town! Keep up the good work, Bob."

Thanks, Barbara. I didn't know about this. Your e-mail has earned you Store Front Operative of the Day and the hardy electronic high-five that comes with it. Here's El-Canelo's. See you there? I like me some Mexican food, too.

Next:

* Michael writes, "Hi Bob! I recently drove across Thompson Road on Erie and noticed the hideous neon sign on the Paradise Found Gentlemens club. I can't believe anyone would let any business put a sign up like that. It's the tackiest piece of %$ I've ever seen and I truly think it will dissuade any future development of that corner where the former Mobil once was. Besides that there's the former Lost Horizon building which needs to become acquainted with a wrecking ball. What can we do about this? I'm so tired of looking at stuff like this and losing out on opportunities like a Starbucks or something cool in that area because the surroundings don't fit their niche. I'm not being prejudice against the gentlemens club -- I just think the way it looks is nauseating and they need to tone it down."

I've heard many complaints like yours. I've also heard, though not confirmed, that Starbucks looked at the location and passed because, as you say, it didn't "fit their niche."

I agree. That has been an eyesore for too long. But there looks like there may be some hope.

Here's what my colleague, Jim McKeever, wrote about that intersection in The Post-Standard on Feb. 23:

A former Mobil station at 3068 Erie Blvd. E. has been vacant since 2002, according to city records, and a nightclub on nearby Headson Drive has outstanding code violations related to the building exterior, according to Jim Blakeman, Syracuse's director of codes enforcement.

On Tuesday, the former gas station sported graffiti on the front facing Erie Boulevard, as well as a "no trespassing" sign and a couple of real estate signs. The exterior decor of the Club Tundra building features plywood, clapboards and cinder blocks, all under a massive billboard that looks out on the boulevard.

What are people saying?

"That corner has been an eyesore for quite a while," said Danielle Hentz, of Syracuse. "I drive down the boulevard several times a week and also tend to take 690 East to the Thompson Road exit a lot. There's nothing like getting off 690 onto Thompson and sitting at that light - looking at the ugliest intersection in the area. It definitely seems to have gotten progressively worse."

What do the owners say?

The gas station is owned by Cars & Credit Today, of Endicott, Broome County. Justin Marchuska, speaking for the company, said it plans to demolish the building within a month or two to make way for a national chain that he didn't want to identify.

"There'll be a brand-new look at that corner soon," Marchuska said.

The nightclub, at 140 Headson Drive, is owned by Anthony Italiano, of DeWitt. Italiano's company, Lost Horizon LLC, also owns the building behind it that houses Paradise Found.

Italiano said he plans to pay back taxes owed on both properties and will correct code violations at Club Tundra - formerly known as Lost Horizon and 32 Degrees - as soon as the weather improves.

Sheldon Ashkin, Syracuse's first deputy commissioner of finance, said last week there were unpaid taxes totaling $25,422 on the Club Tundra property and $13,940 on the Paradise Found property.

What does the city say?

Blakeman said on two occasions the city has cleaned up the old Mobil property, and the charges have been added to the taxes. Ashkin said all taxes on that property are up to date, except for this year's first quarterly installment totaling $2,788.40. Marchuska said he never received the tax bill, and would contact the city to take care of it.

The Club Tundra property has "quite a few" exterior code violations, such as damaged siding and trim, and the lack of an accurately posted street number, Blakeman said.

"We haven't gotten compliance to our satisfaction," Blakeman said. His office has referred the matter to the city's Law Department.

What does the town say?

Richard Robb, commissioner of development and operations for DeWitt, said the town will do what it can to help at that intersection.

"That whole intersection - Headson Drive, Thompson Road and Erie Boulevard - is an embarrassment to all the communities," Robb said, noting that the northeast corner of Erie and Thompson is the edge of East Syracuse.